LABOR LAW
INTRODUCTION
The labor laws, which were originally enacted in
1946, are intended to protect the rights of the employee
and that of the employer. In 1963, a Social Security law
came into effect, which includes provisions for social
benefits such as end-service compensation, family
allowance, sickness and maternity benefits, and
compensation for work related accidents. The legal
framework also provided for Labor Arbitration Council, a
judicial committee that resolves disputes between
employers and employees.
WORKING HOURS
All employees, regardless of age or gender, are
subject to the work hour guidelines set by the labor
law. An employer may demand a maximum of 48 regular
hours per week from his employees. This applies to all
business except agriculture, which is recognized to have
more irregular hours and seasonal work. Under special
circumstances, employers are permitted to add extra
hours to an employees regular shift, a restaurant or
caf for instance, but this requires a permit from the
Ministry of Labor. The law also requires employers who
retain workers in difficult or physically demanding jobs
to set the workers regular hours at less than 48 hours
per week.
A normal working day should be eight hours. However, if
the work is not damaging to ones health, it can be as
much as 12 hours A DAY. Every company should note its
fixed schedule of hours in writing and display it in an
area where all employees can see it, i.e. in the lunch
or break room. An employer is required to give his male
employees a one hour break if they work six consecutive
hours per day. Female employees must be given a one hour
break if they work five consecutive hours per day.
Should an employer find it necessary to have his
employees work overtime, the Ministry of Labor should be
informed the day before and the employee should be
compensated at a rate of 50 percent more than their
regular hourly salary for each additional hour worked.
Employees must be given nine consecutive hours off
between working days. For a six-day working week, the
weekend break must be 36 consecutive hours without
work. It is up t o the employer to set the days that it
will fall on.
ANNUAL LEAVE
Full time employees are entitled to 15 days paid
vacation at the end of their first year of employment.
The employee should inform the employer of when he wants
to take leave but it is up to the employers discretion
to approve the request. If the employer to take the
leave at another mutually convenient time. When an
employee is on vacation, the employer cannot issue a
warning against or fire the employee. The employee can
cumulate two annual leaves.
HOLIDAYS
There is two compulsory public holidays on which all
employers must give their employees holiday with pay:
Labor Day (May 1) and Independence Day (November 22). In
addition, there are 13 other government recognized
holidays during which all public offices and most
businesses are closed.
SICK LEAVE
After an employee has been with employer for more than
three months, he is entitled to a half month paid sick
leave. Should an employee become very ill or require a
long convalescence from surgery or illness, the employer
is required to provide paid sick leave in accordance
with the employees number of years of service.
An employer has the right to request a doctor of his/her
own choice to examine an employee seeking extended
medical leave.
If an employees sick leave exceeds their entitled
annual amount, then the employer has the right to deduct
the extra days from the employees annual leave. When an
employee is out on sick leave, an employer is forbidden
from issuing a warning to or firing him.
BEREAVEMENT LEAVE
In addition to annual and sick leave, an employer is
required to provide his employees with two days
bereavement leave, to be used upon the death of close
family members, including grandparents.
FIRING
The employer and the employee can mutually agree to
break a written work contract at any time, then there is
no payment for damages or entitlements. However, in
situation where one party breaks the contact, the
injured party is entitled to seek compensation. If the
employee believes that he was fired without just cause
and is the injured party, he may seek compensation based
on the type of work he performed, his age, length of
service with the company, marital status, health and how
unfair the decision was. Compensation should not be less
than two and not more than 12 months salary, plus any
legal compensation the employee may be entitled to
depending on the circumstances of his case.
Should an employee quit for no legal reason, or should
he cause his employer embarrassment or hardship by
quitting, then the employer is entitled to seek
compensation from the employee. The amount of the
compensation is between one and four months of the
employees salary plus the amount that would have been
paid to the employee had he given his employer the
required notice.
Once an employee is fired or gives notice that he is
quitting, the law allows him one hour each business day
to look for new work. The employer also cannot fire an
employee who is on holiday or sick leave, unless during
that time the employer discovers that the employee is
working elsewhere. If an employer fires a pregnant, sick
or vacationing employee, then he must compensate them by
paying the salary for the days during which he had no
legal right to fire the worker (i.e. the vacation days)
plus an additional amount for the salary of the notice
period.
MISCONDUCT
In situation where either party breaks the work
contract for reasons of misconduct, the party seeking
compensation must file a lawsuit no later one month
after the violation occurred. It is then up to the court
to decide whether compensation should be paid.
Firing an employee is considered misconduct or abuse of
power if the action is based on an unjust or personal
reason. For example, it is abuse of power if an employer
fires an employee who refuses to join a union or
association in order to hire another who is amenable to
the employers request and will vote for the employer in
a company or union election.
NOTICE
If either the employee wants to quit or the employer
wants to fire a worker, both parties are required to
give the other a written one-month notice if the work
contract has been in effect for less than three years.
In cases of three to six years of service, two months
written notice is required, for six to 12 years of
service, three months written notice is required, and in
situation where the employee has worked more than 12
years, four months written notice is required. The
notice must clearly state the reasons for breaking the
work contract. The party who breaks the contract is
responsible for paying compensation in situation where
it is necessary. However, three is no financial penalty
if either party wants to terminate a contract during the
probationary period.
FINANCIAL HARDSHIP
An employer is allowed to end commercial contracts
with his employees if he has a significant reason, such
as financial difficulties. However, the Ministry of
Labor must be informed of the move at least one month
prior to the employees being released. In addition,
should the companys financial picture improve within
one year, the employer is legally obligated to offer to
rehire the employees he let go before hiring new staff.
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